Nearly eight months after agreeing to it, Minnesota State Colleges and Universities revealed it reached a new three-year contract with its chancellor, Steven Rosenstone.

Rosenstone, the state's highest-paid employee in 2013, will earn $387,250 in base salary in the 2014-2015 school year under the new contract, which runs through July 2017. That's a 1.8-percent base-pay increase from the previous year, according to a MnSCU news release.

The Monday release made the new contract public. But Rosenstone and the chair of the MnSCU Board of Trustees, Clarence Hightower, agreed to it in October.

A copy of the contract provided by a St. Cloud State University faculty union leader, Roland Specht-Jarvis, shows it to be dated Oct. 31, 2013. The president of the state university faculty union, Nancy Black, confirmed the timing of the agreement.

The delay in making the contract public, as well as other terms of the deal, drew fire from the faculty union and a key state lawmaker on higher-education issues.

State Rep. Gene Pelowski, who chairs a House panel on higher education, said he was "incredulous" to learn of the deal.

"There doesn't appear to have a lot of public scrutiny, or any public scrutiny, of this contract," said Pelowski, DFL-Winona.

Rosenstone has been MnSCU chancellor since 2011. His current contract expires July 31.

The MnSCU system comprises 31 state colleges and universities, including St. Cloud State University and St. Cloud Technical & Community College.

Board "delighted" to retain Rosenstone

The chairman of the MnSCU Board of Trustees, Clarence Hightower, said in a statement that the board unanimously authorized him to negotiate the new contract. Hightower said he's "delighted" Rosenstone agreed to it.

"In the years ahead, it is imperative that our colleges and universities work together more effectively to overcome the significant challenges facing all of higher education," Hightower said.

Monday's announcement came after the state university faculty union, the Inter Faculty Organization, sent a harsh critique of Rosenstone to the MnSCU board earlier this month. The union and Rosenstone have sparred over a new strategic planning process for MnSCU. They also have been at odds for more than a year on negotiations for a new faculty contract.

Rosenstone's new contract increases his compensation in ways other than the base-pay increase. It boosts certain allowances, such as for housing or transportation, by $43,160, according to the MnSCU release. The release says the increase brings Rosenstone's total remuneration in line with that of his peers in other state higher-education systems.

But Rosenstone's new contract also eliminates several perks present in his current three-year deal. The first contract guaranteed Rosenstone a two-year appointment as a Distinguished Senior Fellow for Academic Affairs following his term as chancellor. The new agreement eliminates this provision, according to the MnSCU release.

Bonuses gone

The new contract also eliminates Rosenstone's eligibility for a bonus, or "performance achievement award," of as much as $50,000.

The bonuses had become a flashpoint for critics and for some legislators. The MnSCU board voted in April 2013 to stop awarding the bonuses after Pelowski and others harshly criticized them in legislative hearings. Later in 2013, state legislators passed a law barring the MnSCU board from awarding bonuses.

Rosenstone's new agreement creates a committee to evaluate the chancellor's performance, led by the Board of Trustees chair, according to the MnSCU release. The trustees are expected to receive the committee's report at its June 18 meeting.

Nancy Black, president of the Inter-Faculty Organization, said she wasn't sure why MnSCU waited until now to reveal Rosenstone's new contract. But she speculated it may relate to the committee report that's due before the MnSCU board later this week.

A MnSCU spokesman didn't immediately respond to Times inquiries about why the new contract was announced Monday.

Black said that's a matter she and other MnSCU faculty members find puzzling.

"Why did MnSCU feel it necessary today to announce an eight-month-old contract renewal with the chancellor?" Black asked. "If they were going to make it public, why didn't they make it public in October?"